The founder of the retail giant was bluntly told he was accountable for the fact workers are treated as "commodities" rather than human beings at the firm's stores and its warehouse in Derbyshire.

The Business Committee said it had been presented with a "disturbing picture" during its inquiry, and said evidence presented by employment agencies which hire staff for Sports Direct was "woefully poor".

"Workers at Sports Direct were not being paid the national minimum wage, and were being penalised for matters such as taking a short break to drink water and for taking time off work when ill," it stated.

"Some say they were promised permanent contracts in exchange for sexual favours.

"Serious health and safety breaches also seem to have occurred.

"For this to occur in the UK in 2016 is a serious indictment of the management at Sports Direct."

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Staff are treated like "commodities" rather than human beings, say MPsCredit: PA

The Committee chairman, Labour MP Iain Wright, said: "The evidence we heard points to a business whose working practices are closer to that of a Victorian workhouse than that of a modern, reputable High Street retailer.

"For this to occur in the UK in 2016 is a serious indictment of the management at Sports Direct and Mike Ashley, as the face of Sports Direct, must be held accountable for these failings.

Warehouse of horrors

direct action

Sports Direct boss Mike Ashley insists he has 'nothing to hide' in showdown with MPs

"It's seems incredible that Mike Ashley, who visits the Shirebrook warehouse at least once a week, was unaware of these appalling practices.

"This suggests Mr Ashley was turning a blind eye to conditions at Sports Direct in the interests of maximising profits or that there are serious corporate governance failings which left him out of the loop in spite of all the evidence.”

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Mr Ashley was made to give evidence to MPs last month about his businessCredit: Reuters

The Hartlepool MP said: "This model has proved successful for Mr Ashley and there is a risk this will become much more the norm in Britain.

"A modern and developed economy focused on innovation and supporting entrepreneurialism and enterprise cannot be allowed to operate like this.

"We were also disgusted at the poor evidence given by the agency companies, who deduct money from low-paid workers without proper explanation and justification."

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The MPs said they would go to visit the warehouse in DerbyshireCredit: PA

The MPs said it was "irresponsible, if not reckless", for Sports Direct to give the employment agencies £50million when they did not seem to have a basic understanding of employment law.

They said they would visit Shirebrook, called for a review of health and safety in the warehouse, and said the Gangmaster and Labour Abuse Authority should look into employment practices.

A Government spokesman said: "This report details some extremely concerning findings. Everybody deserves to be treated with dignity and respect and the law is clear that pay must be fair no matter who you are or what you do."

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One MP said was "incredible" he was unaware of these "appalling practices"Credit: PA

A spokesman for Sports Direct said: "We will study the contents of the committee's report very carefully. It is our policy to treat all our people with dignity and respect.

"We are pleased to see that the committee has recognised Mike Ashley's commitment to engage in addressing any shortcomings in the working practices at Sports Direct."